DoD Awards Honeywell $188M for F/A-18 E/F Aircraft Components Under Full and Open Competition
Contract Overview
Contract Amount: $61,972,163 ($62.0M)
Contractor: Honeywell International Inc.
Awarding Agency: Department of Defense
Start Date: 2003-12-22
End Date: 2010-05-28
Contract Duration: 2,349 days
Daily Burn Rate: $26.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200407!000003!1700!AT724 !NAVAL AIR SYSTEMS COMMAND !N0001904C0018 !A!N! !N! ! !20031222!20080930!188459929!188459929!139691877!N!HONEYWELL INTERNATIONAL INC -!9201 SAN MATEO BLVD !ALBUQUERQUE !NM!87113!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000013392221!N!N!000013392221!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A7 !ELECTRONICS AND COMMUNICATION EQUIP !549 !F/A-18 E/F !336413!E! !3! ! ! ! ! !99990909!B! ! !A! !A!U!J!2!001!B! !Z!N!Z! ! !N!C!N! ! ! !A!A!A!A!000!A!C!N! ! ! !Y!1719!N00019!0001! !
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87113
Plain-Language Summary
Department of Defense obligated $62.0 million to HONEYWELL INTERNATIONAL INC. for work described as: 200407!000003!1700!AT724 !NAVAL AIR SYSTEMS COMMAND !N0001904C0018 !A!N! !N! ! !20031222!20080930!188459929!188459929!139691877!N!HONEYWELL INTERNATIONAL INC -!9201 SAN MATEO BLVD !ALBUQUERQUE !NM!87113!02000!001!35!ALBUQUERQUE !BERN… Key points: 1. Significant contract value awarded to a major aerospace supplier. 2. Full and open competition suggests a potentially competitive bidding process. 3. Risk of sole-source reliance for specialized aircraft components exists. 4. Spending concentrated in the Defense sector, specifically aircraft manufacturing support.
Value Assessment
Rating: good
The contract value of $188.46 million is substantial. Benchmarking against similar contracts for aircraft components is difficult without more specific data on the exact components and services provided. However, the firm fixed-price structure suggests an attempt to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely benefiting from a fair market price for these critical aircraft components.
Public Impact
Supports the operational readiness of the F/A-18 E/F fighter jet fleet. Ensures the availability of essential aircraft accessories and components. Contributes to the broader aerospace manufacturing and defense industrial base. Potential for job creation and economic activity in New Mexico.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for future sole-source awards if competition diminishes.
- Dependence on a single supplier for critical components.
- Inflationary pressures on material and labor costs.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract helps control costs.
- Supports a key defense platform (F/A-18 E/F).
Sector Analysis
This contract falls within the Defense sector, specifically supporting the sustainment and readiness of naval aviation platforms. Spending benchmarks for aircraft components can vary widely based on technological complexity and production volume.
Small Business Impact
The prime contractor, Honeywell International Inc., is a large business. There is no explicit indication of small business subcontracting goals or participation in this award data.
Oversight & Accountability
The award was made by the Naval Air Systems Command, a component of the Department of the Navy, suggesting established oversight processes. The firm fixed-price contract type also aids in cost accountability.
Related Government Programs
- Other Aircraft Parts and Auxiliary Equipment Manufacturing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Contract duration is substantial (over 4 years).
- Potential for long-term reliance on a single supplier.
- Complexity of specialized aerospace components.
- Economic factors impacting material and labor costs.
Tags
other-aircraft-parts-and-auxiliary-equip, department-of-defense, nm, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $62.0 million to HONEYWELL INTERNATIONAL INC.. 200407!000003!1700!AT724 !NAVAL AIR SYSTEMS COMMAND !N0001904C0018 !A!N! !N! ! !20031222!20080930!188459929!188459929!139691877!N!HONEYWELL INTERNATIONAL INC -!9201 SAN MATEO BLVD !ALBUQUERQUE !NM!87113!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000013392221!N!N!000013392221!1680!MSL AIRCRAFT ACCESSORIES AND COMPONENTS !A7 !ELECTRONICS AND COMMUNICATION EQUIP !549 !F/A-18 E/F !336413!E! !3! ! ! ! ! !999
Who is the contractor on this award?
The obligated recipient is HONEYWELL INTERNATIONAL INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $62.0 million.
What is the period of performance?
Start: 2003-12-22. End: 2010-05-28.
What specific aircraft accessories and components are included in this $188 million award, and how do their unit costs compare to industry standards?
The provided data identifies the contract as being for 'MSL AIRCRAFT ACCESSORIES AND COMPONENTS' under PSC code 1680, specifically for the F/A-18 E/F. However, detailed breakdowns of individual component costs are not available. A comprehensive analysis would require access to the contract's detailed line item information and comparison with market research data for similar, high-specification aerospace parts.
What is the historical competition level for this specific type of aircraft component, and could this award indicate a trend towards limited competition in the future?
While this specific award was made under full and open competition, the long-term availability of competitive bids for specialized aircraft components can fluctuate. Factors such as proprietary technology, limited manufacturers, and high entry barriers can lead to a reduction in competition over time, potentially increasing reliance on incumbent suppliers.
How does the firm fixed-price structure of this contract effectively mitigate cost overruns and ensure value for taxpayer money, given the duration and scope?
The firm fixed-price (FFP) contract structure shifts the risk of cost overruns to the contractor, Honeywell. This incentivizes efficient performance and cost control. For a contract spanning nearly five years (December 2003 to September 2008), the FFP provides a predictable cost ceiling, enhancing taxpayer value by limiting unexpected expenditures, assuming the initial price was set competitively.
Industry Classification
NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Other Aircraft Parts and Auxiliary Equipment Manufacturing
Product/Service Code: AEROSPACE CRAFT COMPONENTS AND ACCESSORIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Honeywell International Inc (UEI: 139691877)
Address: 9201 SAN MATEO BLVD, ALBUQUERQUE, NM, 01
Business Categories: Category Business, Not Designated a Small Business
Timeline
Start Date: 2003-12-22
Current End Date: 2010-05-28
Potential End Date: 2010-05-28 00:00:00
Last Modified: 2010-07-01
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